Credit scores should include more than just payment data to be accurate and timely. Make sure the score you use includes these innovative, advanced data points.
Moody’s downgraded China’s debt rating from Aa3 (S&P: AA-) to A1 (S&P: A+) in May 2017, given widespread expansion of debt in addition to its expectation of slowing economic growth. Separately, Chinese regulators recently passed a law requiring commercial banks to incorporate proper risk management, governance, and other informational reporting related to loan collateral. These developments—and the growth in off-balance sheet financing in the country—are important indicators that suggest credit risks are expanding in China.
Sears Holdings’ (NYSE: SHLD) financial condition appears more challenged than ever given its mounting debt load, shrinking asset portfolio, and ongoing operating losses. While Sears’ management stated it is seeking $1.25 billion in annualized cost reductions, it’s unclear if the company can actually reduce its large cash burn so significantly. Given the unstable financial picture, now is an important time to evaluate the company’s liquidity, particularly regarding merchandise payables.
Do Fed rate hikes mean financial distress for your portfolio? Assess potential risk in your portfolio with these tools.
SolarWorld AG (ETR: SWVK), one of the largest German-based solar product manufacturers, recently filed for insolvency. Management announced that this unfortunate outcome resulted from ongoing product price erosion, coupled with its cumbersome debt load.
Public company credit risk is more pervasive than you think. Do you know how much is in your portfolio?
A healthy supply chain is key to a sustainable, thriving business model, putting immense pressure on the procurement professional as the first line of defense.
Learn how we can provide early warning on critical supplier financial risk: Visit us at ISM2017 in Orlando, at Booth 717.
The new crowdsourcing component of the FRISK® score helps identify public company financial risk more quickly and with better precision. The research activity of procurement, credit, and other financial professionals are collectively the vital driver of this proprietary model component.
Retailers across the board are still under tremendous pressure as consumers shift toward online shopping. Stores saddled with considerable leverage, like Sears Holdings Corp. (Nasdaq: SHLD), Bon-Ton Stores (Nasdaq: BONT), and The Gymboree Corporation, are facing even greater headwinds than most. In fact, retail bankruptcies recently hit their highest level since the last economic recession, and this problem isn’t going away anytime soon.
The avalanche of print media digital disruptions may claim yet another daily news publisher. See the financial red flags that point to a possible bankruptcy filing by The McClatchy Company.